Introduction to the Study and Research Team
The Oregon Wine Board (OWB) has commissioned similar studies quantifying the economic impact of Oregon’s wine grape and wine-producing industries in Oregon in the years 2005, 2010, 2013, 2016, 2019, and 2020 (the last two years were combined) and now 2022. For this 2022 edition, Economic Forensics and Analytics (EFA) is the lead consultant, with Full Glass Research (FGR) providing guidance and industry modeling when needed (FGR has been involved since this report’s 2005 edition). We use 2019 as a pre-pandemic benchmark and comparison year for industry data, especially comparing the previous economic impacts to those from 2022.
This report focuses on a “multiplier” effect from wine-related businesses and their employees. Incomes generated by wineries and vineyards come from selling commodities (grapes) and products (bottled and bulk wine after grapes are processed), workers spending their wages, and vendors generating revenues that become more wages and spending. Vineyard investment, a signal of changing confidence in Oregon’s wine industry, increased from 2019 to 2022. We will see in this report that Oregon’s wine industry continues to create more income for businesses, households, and government through a mix of core and allied industry changes
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Executive Summary
Economic activity directly or indirectly related to Oregon’s wine industry in 2022 was estimated to be $8.169 Billion, +12.8 % from 2019. Growth has continued in the industry since 2019 after many challenges, some of which continue beyond 2022.
In 2022, estimated wine-related jobs in Oregon totaled 39,437, down -1.5% since 2019; related wages topped $1.69 billion in 2022, 12.2 percent more than in 2019. A combination of pandemic changes in Oregon’s labor force, rising inflation, and wage levels across Oregon as pandemic restrictions were lifted helped explain higher wages related to the wine industry and allied businesses versus lower job levels.
Over 1,470 Oregon wine grape growers produced fruit in 2022 from 44,487 planted acres and 40,774 bearing acres for a total value of $330 million (including more than 610 estate vineyards).
- Planted acreage increased by 2,588 acres in 2022 compared to 2021 and by over 7,080 acres since 2019;
- Approximately 137,065 tons of grapes were produced in 2022, an increase of 19.5 percent from 2021 and 29.5 percent more than in 2019;
- Statewide median grape prices were approximately $2,353 per ton (up from $2,225 in 2019), with pinot noir, gamay, chardonnay, and cabernet sauvignon the most expensive grape varietals;
- North Willamette Valley remains the largest grape-growing region in Oregon, with almost five times the volume of South Willamette, Umpqua, or Rogue valleys;
Over 1,110 Oregon wineries or wine companies sold over 5.7 million nine-liter (9L) equivalent cases of wine, with revenues of over $956.4 million in 2022 from sales of packaged wine:
- Oregon winery production in 2022 was estimated at 6.602 million 9L-equivalent cases
- Approximately 60.1 percent of 9L equivalent cases were sold in other U.S. states outside Oregon in 2022, up from 57.6 percent in 2019;
- Grapes crushed by Oregon wineries were 94,426 tons, 11.6 percent more than in 2019, with 2,376 tons of fruit sourced from outside Oregon; and
- Direct-to-consumer (DTC) shipments were 19.3 percent of 9L equivalent cases sold by Oregon wineries in 2022, down from 21.8 percent in 2019;
- All DTC channels sold 82,000 more 9L equivalent units in 2022 than in 2019 as winery sales into distribution channels grew alongside continued direct-to-consumer sales.
The pandemic’s shadow remains on Oregon’s economy and wine industry, though it is fading. Although on-premise sales revenues (restaurants, hotels, etc.) in total closed in on pre-pandemic levels in 2022, a combination of business closures, sales channel shifts, and consumer taste changes have kept wine sales there below 2019 levels. Other parts of Oregon’s wine-industry supply chain saw mixed results.
Between 2019 and 2022, the impact of wine-related tourism fell by 15.1 percent, still contributing $758.4 million in revenues to the Oregon economy, supporting 8,806 jobs and $318.6 million in wages specific to wine-related travel in Oregon;
- Average tasting room spending per visitor increased slightly since 2019.
Retail sales of Oregon wine via all channels outside the winery topped $1.085 billion in 2022, down 9.5 percent from 2019:
- These sales supported 3,500 jobs in stores and retailers, 5,794 jobs in restaurants and other on-premise retail (including wine bars), and at least 401 jobs in distributors and importers.
- Jobs were fewer in 2022 for off-premise and on-premise retail than in 2019 (9,912 in 2019 versus 9,294 in 2022).
Allied industries, such as vineyard management and development and also winery maintenance, have all had revenue gains since 2019. Still, trucking, printing, marketing services, and research and education had lower revenues due to rising costs and shifting channel sales.
Wine-related activity in 2022 contributed over $264.8 million in state and local tax revenues for Oregon (+13.1 from 2019), with over $92 million in property tax revenue (approximately 34.9 percent of total estimated tax revenues in 2022).
Hiring is a challenge and suggests workforce development efforts must increase. Wineries have occupations similar to any manufacturing facility, from floor workers to machine operators to supervisors. Because of tasting rooms on winery grounds, sales, marketing, and perhaps chefs may find work at wineries. Occupations in vineyards and wineries must remain a focus for workforce investment efforts to support workers from farm training to business degrees. These jobs may also employ workers who flex into other industries, from hotel jobs to manufacturing. We also used two new data sources in this report: Community Benchmark (visitor and direct-to-consumer (DTC) data) and the 2023 Wine Labor Market Survey, both investments made by the Oregon Wine Board (OWB) to describe labor conditions and wages. Organizations like the OWB and other regional advocacy organizations supporting regional economic development and bringing consumers to Oregon wineries (affecting direct-to-consumer possibilities, tasting room visits, and advertising generally) endorsed this report
2022 Study New Sources
This edition of the Oregon wine industry’s economic impact includes more details, new data sources on visitors to Oregon’s wineries, and data on the statewide tourism economy overall. .
The Oregon Wine Industry Salary Survey, Community Benchmark, The Oregon Vineyard and Winery Census.
